Amazon deal to boost payments portfolio: Kishore Biyani
Future Group founder Kishore Biyani has said that the recent investment by e-commerce giant Amazon in Future Retail Limited is a strategic investment which will boost the payments portfolio of both the companies.
Amazon had announced that it will be acquiring a minority stake in Future Retail Ltd, which operates more than 900 stores in India and owns fashion brands like FBB. The company had agreed to acquire a 49% stake in Future Coupons Ltd, the promoter entity of Future Retail.
"We had subscription warrants of our company and we had to raise money, so the deal was struck. Moreover, the investment by Amazon is strategic to become a part of the ecosystem," Future Group founder Kishore Biyani told PTI.
“The deal is basically aimed at enhancing the payments portfolio of both the companies. We have a database of 8 billion transactions and 55 million customers. Payments are one platform where we can acquire the customer base. And if the customer starts using your payment mechanism then loyalty factor increases. So its getting into the ecosystem," Biyani added.
India is considered as a major growth market by the e-commerce giant and founder Jeff Bezos has committed investments of more than $5 billion toward Amazon’s expansion in India.
Amazon is looking to expand its reach in the Indian brick-and-mortar market by partnering with retailers across the country. It has already got into partnerships with leading retail chains like Shoppers Stop, More and Future Retail.
Copyright © 2022 FashionNetwork.com All rights reserved.